• 12 hours Mexico Kickstarts War On Junk Food
  • 20 hours How America Could Go Green Right Now
  • 2 days Russian Prestige And American Politics: The COVID Vaccine Race
  • 2 days Is The Silver Rally Over Or Just Getting Started?
  • 3 days Alibaba-Backed Tesla Competitor Set To IPO In The U.S.
  • 3 days Emerging Economies Could Get Left Behind In Race For COVID Vaccine
  • 4 days Dead Malls Could Be Amazon’s Next Target
  • 4 days Unpacking Biden's Energy Plan
  • 4 days Russia Aims To Become World's Top Gold Producer
  • 5 days Global Tech Stocks On Edge Over Trump TikTok Ban
  • 5 days Cobalt Squeeze Threatens The Electric Vehicle Boom
  • 6 days COVID Has Sparked A Surge In Cybercrime
  • 6 days Precious Metals Bulls Still Have Plenty Of Room To Run
  • 7 days The U.S. Has The Tech To Go Green, But Will It Use It?
  • 7 days Massive Losses Force Russian Commodities Giant To Slash Dividends
  • 8 days Markets Up On Stimulus Hope
  • 8 days UK To Invest In Europe's First Geothermal Lithium Recovery Plant
  • 9 days TikTok Takes Center Stage In US-China Tech War
  • 9 days Are Semiconductor Stocks Overvalued?
  • 10 days Jobs Report Doesn’t Say Much Amid COVID Uncertainty
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

TheWaveTrading

TheWaveTrading

TheWaveTrading

My goal is to establish the most likely path that the price of a particular asset will undertake and profit through ETF instruments both on…

Contact Author

  1. Home
  2. Markets
  3. Other

SDOW (3xShort Dow ETF): Bullish Watchlist

Reason: Potential Inverted Head & Shoulder with theoretical target at 33.

In the daily chart below we can see that price has formed a likely IHS, although the right shoulder would look better if price "works" sideways a bit more before breaking out.

The positive divergence and the bullish cross of the MACD (In addition to the histogram above the zero line) are favouring a break out of the sideways pattern developed since the beginning of March.

SDOW Daily Chart
Larger Image

If we zoom in the shorter time frame we can see that Wednesday's Inverted Hammer (Usually a "bottoming" candlestick) has been followed by yesterday's sharp advance. The negative divergence of the RSI (5) should suggest that this is not yet the breakout move, instead it price could consolidate a bit before the kick-off.

In a strong up trend usually the 20 dma should hold, anyway as long as yesterday's lod is not breached the bullish pattern will not be busted.

Therefore the idea is no to chase price higher, instead wait and if there is a pullback, probably in the area of the 20 dma step in with a stop below yesterday's lod.

Since next Tuesday I will be on holiday I will not get involved.

SDOW Daily Chart 2
Larger Image

Yesterday I learned an important lesson that I wont to share:

I decided to anticipate the setup with a tight stop so I bought it at the open but instead of letting it go, without a technical reason, I suddenly sold the position because I was filling sick. So if you don't fill well and you are trading leveraged ETF do it only if you have a sound reason but afterwards push the stop button shut down the computers and go to bed.

 

Back to homepage

Leave a comment

Leave a comment